The Stork hybrid model maintains all the same guarantees of traditional decentralized "oracles": Stork data is fully verifiable, manipulation-resistant, and offered across decentralized infrastructure.
Hybrid Stork is an ultra low-latency (50ms), decentralized off and on-chain price feed designed for any chain. Hybrid Stork is powered by a decentralized network of data publishers, and signed in a way compatible with signature verification on EVM, StarkEx, Starknet, and Move chains. We prioritize performance, using ultra-fast websockets, to ensure data is available at the millisecond level, similar to the data used for trading in TradFi.
Using an off-chain, decentralized feed gives protocols the ability to perform initial processing off-chain, and elect to only push on-chain the price updates that are relevant to your product. Since prices are signed in a chain-compatible way protocols can use Stork’s Verifier Contract, or their own smart contract, to verify the feed on-chain, proving that the data is legitimate.
To illustrate the cost and performance benefit of Stork, consider a traditional oracle operating on a performant L2 rollup like Arbitrum. A typical transaction can cost anywhere from $2.20 to $2.90.
Let's say we wanted to receive a price update for a single market, every second, to match the L2's native block time. Assuming a $2.50 total transaction cost, the monthly cost can be calculated as follows:
That's around six and a half million dollars... per month. Scaling this up with additional markets, and allowing for multiple publishers for each price, significantly drives up the cost further.
For this reason, traditional oracles elect to push the price to chains selectively, for example once per day or during high volatility. Here, wee see Chainlink providing a price update every 24 hours or when volatility exceeds 0.5%:
Chainlink XRP/USD Arbitrum Feed. Screenshot taken 3/9/2023
Using a hybrid protocol like Stork, where the protocol, liquidators, or other parties can monitor Stork's feed off-chain before submitting and verifying the prices on-chain, means that only prices that are needed are published on-chain. For derivatives exchanges, the transactions related to liquidating under-collateralized positions can be subsidized entirely with the fees already associated with liquidations.
This means that Stork is able to support an unlimited data catalog -- adding support for new assets once requested. And Stork has the ability to integrate with new chains easily and cost effectively.
Support for Custom Feeds
Perhaps more importantly, the hybrid model allows for a more diverse feed set, so that prices can be customized to the appropriate use case. Traditional oracles are highly incentivized to only offer very popular feeds, in order to amortize their cost across as many users as possible. With a hybrid model, the data provider can make any arbitrary feed available, knowing that the cost is only incurred when the data is actually being used.